FDI determinants in Mano River Union countries: micro and macro evidence

Rodrigo Martins, Jorge Cerdeira, Miguel Fonseca and Mohamed Barrie
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Jorge Cerdeira: University of Minho, School of Economics and Management and University of Porto, Institute of Sociology (IS-UP) Faculty of Arts and Humanities and Instituto Superior de Contabilidade e Administração do Porto (ISCAP), CEOS.PP
Miguel Fonseca: University of Porto, Faculty of Economics and Management and University of Lisbon, Centre for African and Development Studies, CESA, Lisbon School of Economies of Management
Mohamed Barrie: University of Porto, Faculty of Economics and Management

No 2021-02, CeBER Working Papers from Centre for Business and Economics Research (CeBER), University of Coimbra

Abstract: This paper analyzes the main determinants of Foreign Direct Investment (FDI) in the member countries of Mano River Union: Côte d’Ivoire, Guinea, Liberia and Sierra Leone. We use both data at the firm level and at the country level - and employ OLS and ARDL techniques - in order to examine the differences and similarities in FDI drivers across these four countries. Our results show that international trade, investment in infrastructures and access to credit have a positive impact on FDI. While credit and trade have a similar influence across countries, the effect of investment is distinct across Mano River members, which raises political implications for policy coordination among states. We also conclude that policies aimed to boost human capital, as well as political and economic stability, are relevant, as they augment FDI inflows.

Keywords: Foreign Direct Investment; FDI determinants; Mano River Union; West Africa. (search for similar items in EconPapers)
JEL-codes: C10 F21 F23 O55 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2021-02
New Economics Papers: this item is included in nep-fdg and nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:gmf:papers:2021-02

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